Rajasthan Royals acquisition by Lakshmi Mittal sparks London court battle over shareholder claims: Report

Billionaire Lakshmi Mittal’s planned acquisition of Indian Premier League (IPL) franchise Rajasthan Royals has triggered a legal battle in London, with minority shareholders of the company that owns the team alleging they are being forced to surrender stakes worth around $50 million for just £1 ($1.33), according to a Bloomberg report. 

According to the Bloomberg report, Emerging Media Ventures Ltd., which indirectly holds a majority stake in Rajasthan Royals, is facing a lawsuit from two minority shareholders who claim the company wrongly accused them of “serious misconduct” and withheld their share of proceeds from the franchise’s $1.65 billion sale. 

The shareholders — Bajan Boys Gully Cricket LLC and Halla Bol LLC — have alleged they are owed $22 million and $28 million, respectively, from the transaction. They have approached a London court seeking to block Emerging Media Ventures from enforcing the transfer of their shares, according to court filings reviewed by Bloomberg. 

Business Today was unable to verify the development independently.

The dispute comes as ownership of IPL teams has become one of the most sought-after assets in global sports. The league, which began in 2008 with Rajasthan Royals winning the inaugural season, has grown into a global entertainment powerhouse, attracting investments from billionaires including Mukesh Ambani and celebrities such as Shah Rukh Khan. 

A consortium led by Mittal and vaccine entrepreneur Adar Poonawalla agreed earlier this year to acquire Rajasthan Royals. The deal followed another major IPL ownership transaction, with Kumar Mangalam Birla’s conglomerate acquiring reigning champions Royal Challengers Bengaluru for about $1.8 billion. 

Mittal, the executive chairman of steel giant ArcelorMittal SA, has a net worth of nearly $40 billion, according to the Bloomberg Billionaires Index. 

The shareholder dispute centres on allegations that Emerging Media Ventures accused the minority investors of violating company rules. In May, the company sent letters alleging breaches of conduct guidelines, including claims that Manish Patel, a beneficial owner of the two firms, invested in a team in the National Cricket League in the US. 

The two minority shareholders have denied any wrongdoing, arguing that Emerging Media Ventures cannot prevent them from investing in short-format cricket leagues in countries where Rajasthan Royals does not operate a team. Their lawyers made the argument in court filings. 

The case highlights growing investor interest and rising valuations in franchise cricket, where IPL teams have emerged as some of the most valuable properties in the global sports market.